Photo websites offline after possible breach
The online photo websites of Rite Aid, CVS, Costco and Wal-Mart Canada remain offline in the wake of a possible data breach at the company that hosts all four sites. The companies say their photo sites remain shut down as a precaution. All four sites are administered by Canada-based PNI Digital Media, which is owned by Staples Inc. Late last week, Staples acknowledged that PNI was investigating a potential credit card data security issue but wouldn't say how many companies or people could be affected. All four companies say that their other websites aren't affected by the possible hacking.
East Coast grocer A&P files for Chapter 11
Grocery store operator A&P is filing for Chapter 11 bankruptcy with plans to sell off stores as it faces increasingly tough competition. This marks the second time in five years that the Montvale, N.J.-based company has filed for bankruptcy. This time around, it said it has more than 100,000 creditors along with more than $1 billion in liabilities and over $1 billion in assets. The company plans to sell as many of its 296 stores as possible and said in a filing with U.S. Bankruptcy Court in New York that it has bidders for 120 of those operations with expected proceeds of $600 million.
Sikorsky to be acquired by Lockheed for $9B
Lockheed Martin said it would buy Sikorsky Aircraft, the maker of the Black Hawk helicopters favored by the U.S. military, from United Technologies Corp. for $9 billion in cash. The deal would further bolster Lockheed's status as the world's biggest military contractor, giving it another major business line in addition to its already hugely popular military equipment, including the F-35 fighter jet. The transaction would be structured in a way that generates a tax benefit of about $1.9 billion for Lockheed Martin and its shareholders.
Payment processor First Data files for IPO
U.S. payment processor First Data Corp. filed with U.S. regulators for an initial public offering of common stock. The company said it would continue to be controlled by buyout giant KKR & Co. after the IPO. First Data did not specify the underwriters of the offering. KKR took First Data private for about $29 billion in 2007. As one of the mega-leveraged buyouts that came to epitomize the credit binge preceding the 2008 financial crisis, First Data has proved to be a challenging investment for KKR.
Gawker editors resign over story removal
The executive editor of Gawker Media and the editor of its flagship site Gawker resigned after last week's removal of a controversial article about a media executive. The article, which was widely condemned after it was posted Thursday night, had accused the married male executive of seeking, via text message, to pay for sex with a gay escort. It was removed Friday, and Gawker's founder, Nick Denton, said in a statement posted on the site that he regretted publishing the article. In an e-mail posted on Gawker on Monday, Tommy Craggs, the executive editor, said companies had threatened to withdraw advertising from the site.
Death toll from GM ignition switches at 124
General Motors' faulty ignition switches were responsible for at least 124 deaths and 269 injuries, according to a fund set up to compensate victims. The fund, administered by attorney Kenneth Feinberg, updated the totals Monday. The death toll didn't grow from the previous week, but there were three additional injuries. Victims' families are being offered compensation of at least $1 million each. The fund has finished processing the 4,342 claims it received by the Jan. 31 deadline.
PayPal's shares rise on first day of trading
PayPal shares jumped in its first day as a separate and publicly traded company as the firm outlined plans to capitalize on the rise of mobile payments and the growing digitization of money. The payments system company officially split with eBay Inc. on Friday, 10 months after they announced that they were going their separate ways. PayPal processed $235 billion in total payment volume last year and logged revenue of about $8 billion. Shares jumped $2.08, or 5.4 percent, to $40.47.